You are going to stay sluggish until you forget that 36 total crap. Get your dist setup for mech advance and let it rip start with 20 initial and 42 degrees total. and go up from there I run 45 degrees total timing no issue You have a low comp 360 they all have similar comp tests Your no. 7 is probably a head gasket getting ready to go been there done that several times over the years. Possible just crap built up on valve Sea Foam or marvel will help Don't expect the world but that engine will run better with a Holley 650 dbl pumper and a good 2 inch spacer Comp 268 high energy will help and some good gears in back